In a sweeping legal move, 32 European publishers, including industry giants Axel Springer and Schibsted, have united to file a $2.27 billion lawsuit against Google.Â
The media conglomerates, hailing from diverse countries like Austria, Belgium, Bulgaria, the Czech Republic, Denmark, Finland, Hungary, Luxembourg, the Netherlands, Norway, Poland, Spain, and Sweden, claim that Google’s digital advertising practices have inflicted financial losses upon them.
What the Lawsuit Asserts
According to a statement from the publishers’ legal representatives at Geradin Partners and Stek (From Reuters), the media groups claim that Google’s misconduct has led to a less competitive market, directly causing financial harm.Â
They argue that absent Google’s abuse of its dominant position, the media companies would have enjoyed higher advertising revenues and lower fees for ad tech services.
The funds lost, they claim, could have been reinvested to strengthen the European media landscape.
Google’s Lawsuit Defense
Google denied the allegations, labelling them as “speculative and opportunistic.”Â
In a statement to Search Engine Land, Oliver Bethell, Legal Director at Google, said, “This lawsuit is speculative and opportunistic. We’ll oppose it vigorously and on the facts.”Â
Bethell emphasized Google’s constructive collaboration with publishers across Europe, highlighting the role of their advertising tools in supporting websites and apps.
Context and Timing
The lawsuit follows a $238 million fine imposed by the French competition authority on Google in 2021 for its ad tech business.
Additionally, charges brought by the European Commission last year are referenced in the media groups’ claim. These precedents underscore the mounting regulatory scrutiny over Google’s advertising practices in Europe.
Choice of Dutch Court
Opting for a Dutch court, the publishers are strategically leveraging the country’s reputation for adeptly handling antitrust damages claims in Europe. This helps streamline the legal process and prevents the complexities of dealing with multiple claims across various European countries.Â
As the legal battle unfolds, it casts a spotlight on the evolving dynamics between tech giants and media entities in the increasingly scrutinized digital advertising arena.
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